Under a 'Find a Purchaser' provision, when is the broker entitled to compensation?

• A. When the broker locates a ready, willing, and able buyer and a binding contract at listed price and terms; the broker is entitled to compensation when the buyer has been located and sale closes.
• B. As soon as the broker finds a buyer.
• C. Only if the seller accepts the buyer's offer.
• D. Only if the buyer actually purchases within 90 days.

Answer: (A)

Under this provision, the broker earns a commission when they bring forward a buyer who is ready, willing, and able to purchase under the listed price and terms, and there is a binding contract that leads to the sale closing. The emphasis is on producing a purchaser who meets both the financial readiness and the contractual commitment, not merely finding any buyer or waiting for an offer to be accepted. The sale must actually close (or be under a binding contract that results in a closing) for the broker to be paid. If there’s no closing or no binding contract, compensation isn’t triggered.

That’s why simply locating a buyer isn’t enough, and why compensation isn’t guaranteed just by the seller’s acceptance or a time-limited window like 90 days unless those details are specifically stated in the contract.